The Euro's 4-day long rally took a temporary breather before momentum turned positive once again as markets focus on the latest data from the US and news of the trade talks between China and the United States; as a result, the EUR/USD dropped from a 2-week peak. The US Dollar managed to regain its momentum after the US President became critical of the policy decisions of the Federal Reserve Bank, especially as it relates to interest rate hikes. The minutes from the Fed's most recent meeting are due out later today and are expected to confirm what Fed Chair Jerome Powell has been stating; that is that the Fed is on course to push through two additional rate increases this year.
As reported at 11:13 am (BST) in London, the EUR/USD was trading at $1.16, a gain of 0.21% and off the session trough of $1.15533 while the peak is at $1.16028, The EUR/GBP is trading at 0.8994 Pence, up 0.18%; the pair has ranged from a low of 0.89623 Pence to a peak of 0.90051 Pence in this trading session.
Low Expectations for US-China Talks
Talks between the US and Chinese governments are expected to begin later today in Washington. However, markets are not expecting any clear resolution to the ongoing trade war between the nations as these talks are among lower level bureaucrats. Concerns over the future of the talks continue to weigh on higher-risk currencies, especially those which rely on the fortunes of China, i.e. the Aussie and Kiwi Dollars. The AUD/USD is trading 0.2058% lower at $0.7351 while the NZD/USD is up 0.0871% at $0.6702.